Cloud computing is the next big thing in the world of technology. It’s a game-changing technology that allows businesses and individuals to store, manage, and access data and applications over the internet. As more companies move their operations to the cloud, the demand for cloud computing services is on the rise, making it an attractive investment opportunity for savvy investors.
What is a Cloud Computing ETF?
A cloud computing ETF is an exchange-traded fund that invests in companies that provide cloud computing services. These companies are at the forefront of the cloud computing revolution, offering services such as infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS).
Cloud computing ETFs allow investors to gain exposure to the cloud computing industry without having to pick individual stocks. Instead, investors can buy shares of the ETF, which owns a diversified portfolio of cloud computing companies.
The Benefits of Investing in a Cloud Computing ETF
Investing in a cloud computing ETF has several benefits:
- Diversification: A cloud computing ETF provides investors with exposure to a diverse range of companies in the cloud computing industry.
- Low Cost: ETFs typically have lower fees than mutual funds, making them a cost-effective investment option.
- Liquidity: ETFs are traded on exchanges, which means they can be bought and sold throughout the trading day, providing investors with liquidity.
Top Cloud Computing ETFs
There are several cloud computing ETFs available to investors. Here are some of the top cloud computing ETFs:
1. First Trust Cloud Computing ETF (SKYY)
The First Trust Cloud Computing ETF (SKYY) is one of the largest cloud computing ETFs, with assets under management of over $5 billion. The ETF tracks the ISE Cloud Computing Index, which includes companies that generate at least 50% of their revenue from cloud computing services.
2. Global X Cloud Computing ETF (CLOU)
The Global X Cloud Computing ETF (CLOU) is another popular cloud computing ETF, with assets under management of over $1 billion. The ETF tracks the Solactive Cloud Computing Index, which includes companies that generate at least 50% of their revenue from cloud computing services.
3. WisdomTree Cloud Computing Fund (WCLD)
The WisdomTree Cloud Computing Fund (WCLD) is a newer cloud computing ETF, launched in 2019. The ETF tracks the BVP Nasdaq Emerging Cloud Index, which includes companies that generate at least 50% of their revenue from cloud computing services.
The Future of Cloud Computing
The future of cloud computing looks bright. The demand for cloud computing services is expected to continue to grow as more companies move their operations to the cloud. According to Gartner, worldwide public cloud revenue is expected to reach $266.4 billion in 2020, up from $227.8 billion in 2019.
Investing in a cloud computing ETF is a great way to gain exposure to this rapidly growing industry. With several top-performing cloud computing ETFs available to investors, there’s never been a better time to invest in the future of technology.
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Learn about cloud computing ETFs and how they allow investors to gain exposure to the cloud computing industry. Discover the benefits of investing in a cloud computing ETF and the top cloud computing ETFs to consider.
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cloud computing, ETF, investing, technology, infrastructure-as-a-service, platform-as-a-service, software-as-a-service, diversification, low cost, liquidity, First Trust Cloud Computing ETF, Global X Cloud Computing ETF, WisdomTree Cloud Computing Fund, Gartner